Aetna CFO: Republican leaders understand: don't repeal the individual mandate

Republican leaders grandstanding about repeal of the Affordable Care Act understand that there will be no repeal and that the health insurance companies are dead set against repeal.  They see 32 million new customers coming, according to a report  on Prof. Brad Delong's site about the discussion at the JP Morgan Health Care Conference.


According to Joseph M. Zubretsky, Chief Financial Officer at Aetna health Insurance (and remember that the CFO of an insurer is a big megillah):

Republicans understand that a rifle shot approach to tearing out specific health reform provisions, particularly the individual mandate, would not bode well for their business. “The unintended consequence of repealing and replacing part of the legislation is the biggest risk here,” he said. “If guaranteed issue stays but the enforceable mandate disappears, you need another mechanism to make the costs in the risk pool work.” Zubretsky said Aetna has been in touch with the GOP on the issue and “believe the Republican leaders we’ve been talking to understand the consequences of decoupling the mandate from the guaranteed issue.”

Translation: we can't accept all comers - and we can't pay out 80% of revenue in benefits (which the health care reform act requires ) unless we have paying policyholders.  Many people won't buy insurance if they don't have to buy it until they get sick.  So all these court fights against the individual mandate and all the talk of repeal of it is exactly what the health insurers don't want.